Get your taxes done using TurboTax

That's true, @Gas6; if you have a suspended loss (carryforward) that includes the accumulated depreciation which would be released upon a sale, then the basis would be reduced accordingly.

 

Check to see if you have a Form 8582 (which you may not have if you used the vacation home as a residence; more than the greater of 14 days or 10% of the days rented at fair rental value).